In order to fully grasp the concept of COSMOS, one must first understand the whole idea behind Blockchain. A blockchain can be described as a digitally distributed ledger across a network. Blockchains are typically maintained by Validators and remain correct, except two-thirds of them are malicious. One of the aims of Blockchain technology is to ensure correctness. The significant benefit behind this feature is that participants of the chain see the same thing differently. Blockchains are also decentralized, and parties involved know that no central authorities control the ledgers. However, while the idea of Blockchains is excellent, the technology behind COSMOS appears to take Blockchain to the next level. In this article, we will be looking at the COSMOS project.
What Is COSMOS Crypto?
Cosmos is an ecosystem of blockchains that can scale and interoperate with each other. The Blockchain is called the internet of Blockchains because it powers a system that allows Blockchain to thrive in uniform. Cosmos SDK is an open-source framework for building multi-asset public Proof-of-Stake (PoS) blockchains. Another way to see COSMOS is a decentralized network of independent parallel Blockchain powered by Byzantine Fault Tolerance (BFT) consensus.
One of the significant problems facing Blockchain before the creation of COSMOS was isolation. Blockchains could not communicate with each other, thus limiting their abilities and transaction speed. They were also hard to build and limited in the capacity of processing transactions. However, with the advent of COSMOS, these technical problems have come closer to the solution. According to its developers, COSMOS is an expanding ecosystem of related apps and services. The target of these ecosystems being built by COSMOS is tailored towards the future.
How COSMOS Crypto Works
COSMOS is a Blockchain fixing the lack of communication between the thousands of cryptocurrencies globally. Cryptocurrencies, despite their similarities, are challenging to transact over a different network. A typical example of this is that an Ethereum user cannot send it on the Dogecoin network. However, this is the problem that the COSMOS blockchain is fixing by creating an internet of Blockchain model. This is done by connecting each Blockchain to the inter-blockchain communication (IBC) protocol. Each Blockchain in COSMOS is called a Zone, and they are connected via the IBC. Alternatively, these connected Blockchains retain their individual properties while interacting with the other Blockchains. This is made possible by deploying Tendermint’s Byzantine Fault Tolerant consensus.
Tendermint BFT And The ABCI
Tendermint is the state-of-the-art BFT consensus powering the COSMOS Blockchain. Before now, building a Blockchain required three layers- Networking, Consensus, and Application. Ethereum’s attempt to simplify this process, while it proved to be effective, did not simplify the building of Blockchain. However, the 2014 invention of American Blockchain Software Architect- Jae Kwon helped COSMOS solve this problem. Tendermint BFT is a solution that incorporates the networking and Consensus layer of a Blockchain into one single-engine.
Tendermint aims to ensure that developers entirely focus on developing applications without worrying about protocols. The advantage of this critical feature is that developers save a lot of time in building applications. The security, high performance, and instant finality feature of Tendermint make it an immense technology pegged as the future. Alternatively, Application Blockchain Interface (ABCI) is the socket protocol connected to the Tendermint BFT engine. ABCI aims to ensure that developers using Tendermint are not limited by programming languages.
How COSMOS Improved The Blockchain Ecosystem (Bitcoin & Ethereum)
In the early days of Blockchain, Bitcoin appeared to be the first and successful application of Blockchain technology. Since it was the first decentralized application on a Blockchain, developers were limited to building new projects. Either they fork the Bitcoin codebase or develop new technologies on it. It was pretty challenging to build with either option, with issues like limits and non-user-friendly language poised as barriers.
Alternatively, Ethereum’s 2014 proposal to build decentralized applications with the Ethereum Virtual Machine (EVM) did not prove a great solution. While it allowed the developer to process smart contracts without restrictions, its limitations became feasible. Issues like scalability, usability, and sovereignty became pertinent. The shared rate of 15 transactions per second and low flexibility access to developers became huge concerns. However, this is the advantage of COSMOS, as the Blockchain has made it easier for developers to build without restrictions. With its internet of Blockchain features, blockchains can now communicate with each other in a decentralized way.
How COSMOS Is Solving Scalability
As you know, Cosmos makes Blockchains solid and easy to develop with Tendermint BFT and the modularity of its SDK. However, the Blockchain takes two primary approaches to solve scalability- Vertical Scalability and Horizontal scalability. Vertical scalability comprises the techniques of scaling the Blockchain itself. Tendermints achieve this by moving away from Proof-of-work and its affiliates, completing thousands of transactions per second. However, in vertical scalability, the success factor is dependent on the application itself, with Tendering improving on what is available.
Alternatively, Horizontal scalability tends to focus on the limits of vertical scalability. For instance, the transaction throughput will hit a barrier if the consensus engine and the application are highly optimized. However, going past such barriers will need horizontal scalability if they ever are encountered. Horizontal scalability ensures that multiple parallel chains run the same application and operate by a standard validator set. The impact of this is that it will ensure that blockchains are infinitely scalable.
What Is ATOM?
One of the biggest problems with Blockchains is that they are created independently, and few can transfer data. ATOM is the token that powers the COSMOS ecosystem of Blockchains. Holders can use ATOM for staking and earn a reward for it. Between 2019 and 2020, the token price was between $3 and $8. However, the token was one of the beneficiaries of the Crypto bull run in 2021 that saw it hit $29. The cryptocurrency’s market cap is $9,090,446,916.41, and its ATH price is $44.54. The token is currently listed on crypto exchanges like Binance and Coinbase.
Is ATOM A Good Investment?
Crypto analysts believe that Atom is one of the best tokens to invest in despite a recent price fall. The ongoing project in COSMOS, which involves the Theta Upgrade, is predicted to improve the prices of ATOM. Blockchain developers flocking around COSMOS is also believed to bolster the fortunes of the Blockchain. Developers’ preference of COSMOS ahead of known names like EVM is predicted to impact ATOM positively. However, while the future is bright towards COSMOS and ATOM, expectations from users and investors continue to be high.
While Blockchains find it challenging to communicate on the same scale, COSMOS is making that possible. Apart from its high-end scalability and speed offerings, it has created an internet of Blockchains ecosystem. After falling from its ATH of $44 last year, its token- ATOM, is believed to be a worthy future investment that has room for growth.
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